Who are Web Aggregators?
Web aggregators are insurance intermediaries who are registered with Insurance Regulatory and Development authority of India (IRDA). Web aggregators have registered websites on which they provide duly compiled information of all the insurance policies provided by different insurance companies.
Who can be an Applicant?
Following are the persons who can apply for Insurance web aggregator-
- Any company registered under Companies Act, 2013 or any of its previous versions.
- Any LLP registered under Limited Liability Partnership Act, 2008. However, the following persons cannot be a partner in that LLP.
- Non-resident entity.
- Any LLP registered under Foreign laws
- Any person resident of outside India as prescribed under Foreign Exchange Management Act, 1999 (FEMA)
- Any person duly recognized by IRDA as an Insurance web aggregator.
Eligibility criteria for registration as an Insurance web aggregator
Minimum Capital Requirements
To apply for an insurance web aggregator, the applicant is required to meet the minimum capital requirement of Rs. 25 Lakh.
In case of a company, such capital must be issued in the form of subscribed capital
And in case of a Limited Liability Partnership then the contribution must be in the form of cash only.
Minimum Net worth Requirement
The minimum net worth requirement for insurance web aggregators is Rs. 25 Lakh.
For this purpose, they are required to review their Net Worth half yearly on 30th September as well as on 31st March every year. Along with these reviews, web aggregators are also required to submit a certificate from a Chartered Accountant to the Authority every year after the finalization of its accounts.
Application Fee
While submitting an application form for Insurance web aggregator the applicant is required to submit non-refundable application fees of Rs. 10,000/- plus applicable taxes on the same.
Application for Registration
For application form for Insurance web aggregators one has to fill and submit the Form A. format of Form A is provided in schedule I of the regulations.
Validity of Certificate of registration
Once the certificate is issued to the applicant, it remains valid for a period of 3 years from the date of registration and issue of such certificate.
However, it can be cancelled or suspended by the authorities at any point of time before that in case of any non-compliance of the provisions stated in the regulations.
Conditions for Registration
There are certain conditions whale analysing the application and they are as follows-
- The applicant is as per the person defined under regulation 2(k)
- To make sure that the applicant is not registered as any other form of insurance intermediary as per the relevant regulations issued by the authorities. However, if any of its group entities is involved in any other kind of insurance intermediary business, registration can be granted after making sure that there are no conflicting interests.
- The applicant must not be in kind of referral arrangements with any registered Insurer.
- The applicant must have a registered website to undertake web aggregator activities.
- The appointed Principal Officer must have specified academic qualifications as mentioned in Form C of Schedule I and has undergone the specified training and qualified the examination for the same.
- Along with the principal Officer, the Authorized Verifier must also have completed the relevant training and passed the specified examinations.
- All the officers of the applicant organization must qualify the fit and proper criteria specified in Form D of schedule I.
- The Authority must check if in past one year any application for registration as a web aggregator is either rejected by the Authority itself or voluntarily withdrawn by the applicant.
- The registration granted must be in favour of the policy holders.